Why Firing ‘Low Performers’ Often Backfires—And What CEOs Keep Getting Wrong Tech CEOs like Musk and Zuckerberg think mass layoffs of “low performers” create stronger teams. But history—and data—say otherwise. • Fear kills innovation: When employees worry about their jobs, they stop taking risks. • Layoffs drive away top talent: Studies show a 1% layoff leads to a 31% spike in voluntary turnover—and it’s the best people who leave first. • Microsoft’s painful lesson: Under stack ranking, employees spent more time sabotaging each other than innovating. The result? A 50% drop in market cap—until Satya Nadella scrapped it. • Welch’s regret: Even the father of “rank and yank” admitted late in life that performance management should be demanding, not demeaning. Cutting “low performers” sounds bold, but history proves it’s a shortcut to mediocrity. High expectations + great leadership beat fear every time. Here is a link to the article. https://lnkd.in/eyhk-gvi